1. Certain capital amounts (remaining capital, interest calculation capital, disbursement obligation) are regarded as fixed on the key date for the changeover. These amounts are corrected either for technical reasons or to keep in line with business practice.
2. The system translates the cash flow from the original currency into euros record by record. The capital amounts are calculated on the basis of the cash flow in the original currency and translated into euros at the fixed rate. At the same time, the capital amounts are calculated on the basis of the cash flow in euros.

The system then calculates any rounding differences between the capital amounts.

3. Such rounding differences, could, for example, affect interest calculation. To clear the rounding differences, the system performs a one-off adjustment of the interest calculation capital on the key date for conversion.
4. If the disbursement obligation balance is zero before the changeover, the system creates an adjustment flow for the disbursement obligation to clear any rounding differences and set the balance back to zero.
5. The system also adjusts the remaining capital amount disclosed to the borrower. The system adjusts for the differences automatically during conversion.
6. The amounts for the adjustment postings for interest calculation capital and disbursement obligations are calculated in the same way as for the remaining capital. These adjustment postings are only included in the cash flow to reconcile the capital amounts within the loan. To ensure that the adjustments are not posted in FI, the system generates the following posting record:

For an example of an adjustment posting, see Currency Swap Posting: Loan Position